Some dismiss the need for business insurance for smaller businesses and partnerships because they may feel there is less at risk than what is at stake for a big business. The problem with this line of thinking is that big business owners are generally more insulated from risks. This is due to perhaps a more protective corporate structure and the resources to protect them individually from claims. Small business owners, particularly those in partnerships, are more exposed to the front lines. This can place them at greater risks in a variety of ways.
The first, of course, is liability. Without the benefit of a corporate structure, small business owners may be held directly liable should a liability claim be filed against them. This can be the result of an injury or a variety of other events. This can not only place business assets at risk, but personal assets as well.
The other way partners may be at risk is one of the partners should die while the partnership is in place. Partners, after all, usually play key roles in their companies and a death of one could potentially create a void that could significantly negatively impact the company. A death of a partner could also create issues with surviving family members who may inherit the a partner’s shares. They may not, however, have any interest in being a partner or add any value to the organization. In both circumstances, life insurance can help.
When partners begin a business relationship, they should consider what would happen in case one should die. They should think about the impact that would have on the company and the family left behind. Life insurance can financially allow the company to continue, while providing a vehicle for surviving family members to be compensated financially. It can buy the time to fill the skills gap that may result in a death.
A small business and partnerships need to be cautious about expenses, but they still need to account for the unexpected. Business insurance can accomplish this and our independent insurance agents are in a unique position to help. We’ll discuss the specifics of your business and company organization. We have access to multiple insurance companies and can “shop” for the most appropriate coverage at a price your small business can afford.
Contact us today for a no-obligation business insurance review. Move forward with confidence in your business with sufficient commercial insurance for your situation.